R
ay Dalio believes the US budget deficit needs to be reduced to 3% of GDP to avoid crippling debt servicing costs. He also thinks it's a bad time to invest in real estate, citing concerns over interest rates and taxes.

    Dalio, founder of Bridgewater Associates, has been warning about an impending US fiscal crisis. In a recent post, he argued that real estate investing is less attractive than usual due to its sensitivity to interest rates, ease of taxation, and illiquidity. He believes real estate values may decline in real terms as interest rates rise.

    Dalio's concerns about real estate are linked to his broader strategies for navigating an economic downturn. He recommends hedging against inflation and diversifying portfolios. He also suggests allocating 15% of a portfolio to gold or bitcoin, with a preference for gold over cryptocurrency.

    Dalio has been sounding the alarm on the US economy, warning that failing to reduce the deficit could lead to disaster within three years.